The NFT market and innovators have become the SEC’s next target in a new wave of regulatory action by the company.
According to Bloomberg , it is explained that the United States Securities and Exchange Commission (SEC), headed by Chairman Gary Gensler, is investigating well-known NFT artists and markets working in connection with the default clause. The anonymous source in the report says that the SEC is investigating whether certain NFT tasks and platforms are currently being employed to raise capital as standard stock.
While crypto lending assets have been subject to extreme regulatory scrutiny by the SEC over the past year, such as the Coinbase exchange scandal , the move marks an important step in bringing scrutiny to the NFT discipline. The survey shows that the SEC is specifically interested in the widely used type of fractional NFT.
This is how a higher value NFT is divided into tokens signifying the work that will be offered to the local community, making it easy for users to own them. The most notable in the top pick are the “Feisty Doge” box valued at around $110 million on August 24 and DOGE NFT at $225 million, making it the highest-ranking NFT in the crypto business context.
However, the NFT is only the latest “victim” in what should be the most devastating wave of crackdowns ever directed against the SEC trying to dominate the cryptocurrency market. Because in early December 2021, SEC Chairman Gary Gensler frankly stated that the cryptocurrency market has been horribly manipulated. As such, he is set to act in 2022 putting more pressure on cryptocurrency exchanges to bring them under the agency’s strict oversight framework.
More recently, the SEC also investigated Binance.US and CEO Changpeng Zhao for market manipulation after ordering New Jersey-based crypto lending provider BlockFi to pay a record fine of up to $100 million for supplying illegal goods. to consumers, as effectively as violating the Investment Company Act of 1940.
In terms of improvement, the reason that NFT has been “touched” by the SEC can largely be attributed to the surprising evolution of the industry since the beginning of this year. NFT has been the main driving force supporting the entire market during the stagnation period of the last three months.
Typically, OpenSea’s elite meetup , the representative who broke the NFT transaction volume record in January alone, has completely overwhelmed his career path thus far, effectively raising $300 million in capital, at a valuation of $13.3 billion. Furthermore, the entry of a number of different large standards organizations is enough to “heat up” the SEC.